A study by Future Capital Holdings says Indian consumer activity has slowed for the 2nd consecutive quarter as a series of monetary tightening measures by the central bank.

Indian consumer activity has slowed for the second consecutive quarter as a series of recent monetary tightening measures by the central bank worked its way into the economy, a study by Future Capital Holdings said on Monday.

The Future Capital Holdings quarterly momentum index fell to 5.6 per cent in April-June from 5.8 per cent in the preceding quarter.

The index, developed by the financial services arm of the Future Group, collates data on passenger vehicle sales, house rental prices index, credit card consumption and mobile phone sales.

Private consumption expenditure accounts for nearly 60 per cent of the country's GDP. Tata Motors, the country's top bus and track maker, reported a 6.6 per cent fall in sales in July, its third straight month of contracting sales.

Central bank has raised interest rates five times since June last year and last week it raised banks' cash reserve requirements by 50 basis points to 7 per cent last week.

According to estimates, the Indian economy is set to expand by 8.5 per cent in 2007/08, compared to 9.4 per cent last year.

"The trend in quarterly movements may start to reflect in the headline readings in the coming quarters," Roopa Purushothaman, Saurabh Bandyopadhyay, Anindya Roy, authors of the report, said.